ADVOKS GLOBAL · KENYA
Movable Property Security Rights Act
49. Acquisition security rights in proceeds
Edition: 2022-12-31 · In force
49. Acquisition security rights in proceeds
(1)In the case of an acquisition security right in equipment, a security right in proceeds has the same priority as the acquisition security right.(2)In the case of an acquisition security right in inventory or intellectual property, a security right in proceeds has the same priority as the acquisition security right, except where the proceeds take the form of receivables, negotiable instruments, or rights to payment of funds credited to a deposit account.(3)The priority of a security right in proceeds referred to in subsection (2) is conditional on the acquisition secured creditor notifying non-acquisition secured creditors with a security right in the same kind of asset as the proceeds that, before the proceeds were generated, the acquisition secured creditor registered a notice with the Registrar.